Whether you’re a renter or an owner, having the right home insurance in Dubai is really necessary. Home insurance can protect occupants and their possession in case of unexpected events such as fire, flood, theft, and malicious damages in the property.
Triggered by news about home fires, an increasing number of residents are considering a home insurance as part of owning or renting a property in Dubai.
We have heard about fire incident at Dubai Zen Tower last May, as well as the burning Torch Tower, flooded the news in August last year, both are located in Dubai Marina. It’s unfortunate for tenants and homeowners at The Palm Jumeirah Adriatic Building in Palm Jumeirah when their homes were also caught on fire last December 2016 and of course, who can’t forget the fire at The Address Downtown Dubai Hotel in Downtown Dubai on 2016’s New Year’s Eve.
With such unfortunate events like the above mentioned, it really pays big to have your home insured. However, before you finalise which type of home insurance you need, it is best to understand the importance of insuring your apartment, whether you’re an owner or a renter.
What is home insurance?
Home insurance is a form of property insurance that provides protection against losses and damages to an individual’s home and the belongings kept inside the property. Home insurance also covers liability or legal responsibility for any injuries or accidents, you or members of your family cause to other people while inside the property.
Understanding homeowners’ insurance
Homeowners’ insurance is a standard procedure in every property for sale in Dubai. Normally, the standard insurance covers only the home itself along its physical property such as ceilings, walls, and pipes.
However, a comprehensive home insurance, on the other hand, can provide coverage in the home contents as household goods and other items including valuables, clothing, furniture and fixtures, and electronics that are placed inside your property.
Understanding renters’ insurance
A renters’ insurance or often called as tenants’ insurance is a type of insurance policy that mainly covers the tenant’s personal property against unexpected events such as fire, theft, and vandalism.
Most likely, the rented property is insured by landlords but it only covers the physical aspects of the property. Renters’ insurance provides coverage for home contents and significantly less expensive than a homeowners policy.
Why do you need home insurance?
Most people in Dubai think that natural disasters rarely happened in the country. And Dubai is considered as one of the safest cities in the world, so security is not an issue that’s why getting the right home insurance is likely not a priority for many.
Unexpected events such as natural disasters, fires, burglaries, and other unfortunate incidents may happen that will affect your property as well as your belongings. Having said that, if you own an apartment you’re currently living in, having a comprehensive insurance is advisable as it covers both physical property and its home contents.
On the other hand, if you’re renting an apartment in Dubai for example, getting a home contents insurance policy is highly recommended. Renters insurance covers your loss of personal belongings, it means damages will be repaired or replaced if it's completely destroyed. All of us don’t know what will happen next but being prepared is a wise decision.
Choose which insurance policy you really need, identify its coverage and go with an insurance provider with a solid reputation.
You need to ask the following questions before committing to any home insurance policy.
- What are the covered items? (Furniture, electronics, clothing, and other valuables.)
- What type of risks does the policy cover? (Fire, theft, flood, and any natural disasters.)
- What will happen if you or someone else get hurt or injured inside the property?
- Does the policy is sufficient for anyone including roommates and visitors?
- Does the policy cover the items outside of the home?
- How much do I need to pay?
- Can you tell me more about the insurance provider’s reputation and experience?
The right home insurance can really make a big difference, especially with your finances when misfortune struck you and your property. Identify these questions properly and relate it to your situation, whether you’re a renter or homeowner. Keep in mind that it is not about anticipating unfortunate things to happen, it is about preparing yourself not to bear all the cost of such unexpected event efficiently.